Richard Tyler is the Daily Telegraph's Enterprise Editor. He writes about all aspects of business life and edits the Telegraph's Your Business page, which appears in print every Tuesday and Sunday and is updated daily online. Aged 35, he still believes he's young, but the white hairs appearing on his chin suggest otherwise.

Will Britain turn its back on entrepreneurs?

Despite everything we hear about the economy, almost 98,000 new businesses set up in the first three months of the year. That around 100,000 firms closed their doors did not seem to daunt these optimistic entrepreneurs. But the steady drip drip of warnings about the economy is beginning to take its toll.

Insolvencies are on the rise with pundits predicting a 20pc jump in business failures by the end of the year.

Firms are protecting their cash flows, delaying payments to trade creditors where they can (the average delay has risen from 17 days to around 22 days, according to credit reference agency Experian.) The CBI predicts the worst trading conditions since the last recession in 1992.

As such, Britain's fledgling enterprise culture faces a significant challenge. In recent years going into business on your own has been seen as a viable alternative to permanent employment. Reflecting the shift, the stock of businesses operating in Britain jumped by 800,000 to some 4.5m between 2000 and last year.

But the total stock fell last year and, at least according to the Barclays statistics, look set to do so again this year.

Behind each closure is a personal tragedy. Rochelle Gee (see Tuesday's Your Business page) whose hopes have been shattered by the financial reality of running a restaurant that faces rising costs and falling custom, is just one such story.

Experiences such as this will have an impact on the country's appetite for risk, its enterprise culture. Ms Gee will not be alone in thinking that if she had her time again she would never set up her own business.

The question is how will families, friends (and the bank manager) respond to the fact that businesses launched by loved ones (and customers) begin to struggle, even fail as the economic slowdown takes its toll?

The 2002 Enterprise Act was designed to usher in an new era of public and institutional tolerance to business failure. Entrepreneurs setting up ventures that do not succeed as planned through no fault of their own are now meant to be treated more gently.

But is this how family, friends and the bank manager will respond in reality?

The banks in particular are under severe financial pressure and with traditional banking relationships between local bank manager and business undermined by the rise of remote call centres, there have to be questions over how the banks will react when an entrepreneur comes knocking on the door looking for help rather than the rug being pulled out from under their feet.

It is not all doom and gloom. There will be plenty of excellent new businesses setting up over the next year or two that thrive. Take the latest idea from serial entrepreneur Ben Way as an example. Today he launches Go Green Plumbing, an environmentally friendly take on a traditional trade that promises improved customer service (you can track where your plumber over the internet), lower carbon emissions (it has a fleet of electric vans) and cheaper prices (by avoiding rising petrol prices, the London congestion charge and parking fees the firm claims it can undercut the established players with the M25 by around 15pc).

Way's 'can do' attitude will survive. But first time entrepreneurs are likely to have their confidence tested.

A reality check is a good thing. Going into business is risky. Perhaps some people lost sight of that.

What should not be lost is that growing willingness to act on ideas, to be innovative and take calculated risks: all of which underpin an enterprise culture.

Who will defend it? Forget the Government – it does not have all the answers. It is time for the friends and families of entrepreneurs (and yes, the bank managers too) to be supportive. Experienced managers should make themselves available to the next generation, whether through mentoring, counselling, or simply as a shoulder to cry on.

British entrepreneurship has blossomed in the last decade. The business community must ensure that it remains in such good health for decades to come.